Novikova Olha, senior lecturer of the Economics and entrepreneurship department, Sumy National Agrarian University, Ukraine

ORCID ID: 0000-0002-6999-9268
e-mail: novikova.css@gmail.com

Agricultural Product Markets:
Current State and Trends in Chicken Eggs Production in Ukraine and Worldwide

Abstract. Introduction. The ever-growing world population and low price of chicken eggs have provided reasons for the increased popularity and growing market of this product in Ukraine and worldwide. Nevertheless, the ability to generate profit mainly depends on minimizing feed expenses together with having long-term selling contracts with a stable price level in hard currency.

Purpose. Main goal of the article is to analyze the situation with chicken egg production in Ukraine and worldwide, outline the main problems effecting this sphere, structural characteristics of the market and develop proposals for improvement.

Results. Despite multiple challenges in the sphere (necessity to change supplier of hatching-eggs, being highly dependent on the price of feed and electric power) Ukrainian producers managed to increase production almost two times bigger in the last 20 years and became one of world’s largest exporters.
The production structure has not changed much with 44% being still produced by subsistence farmers. As for the legal henneries – almost 41% of them are micro size with less than 1 mln hryvnia sales a year. Another 22% are small with 1-10 mln hryvnia sales a year, 26% – middle-size and 11% in number make large companies with more than 100 mln hryvnia sales in one year. However, they sell 89% of the value of all egg products, which is more than 12 bln hryvna in total. That is how 19 biggest henneries actually control all market.
Profitability of the egg production has been rather unstable lately with reported cost-benefit ratio of -23.5% in 2019. The price has also been unstable with fluctuations between -36% to +53% of the mean value during the year which makes business very unpredictable.

Conclusions. The conducted research revealed positive trends in chicken egg production resulting from high demand for cheap food. However unreliable Ukrainian market stimulates exportation which protects producers from price fluctuations and growth of production cost. This made Ukrainian producers 4th largest world exporter. Production in Ukraine is mainly concentrated by the 19 largest henneries. Small-scale producers strongly suffer from all negative effects and are unable to support themselves without external financial assistance.

Keywords: egg production; agricultural markets; egg exports; egg exports; price fluctuations.

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